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Affiliate marketing is among the simplest as well as easiest methods of making money through blogging. But just what is affiliate marketing and what does it mean?

Understanding affiliate marketing

There are basically two ways through which a person can make money on the internet. They include the following.1. Selling stuffs2. Selling or promoting stuffs belonging to somebody else and then receiving a commission from that sale.Our focus in this article will be on the option #2. It is a rough idea of what affiliate marketing is.

Definition

Affiliate marketing can be defined as a technique of marketing where you promote the products or services of another person through your website or blog. In general, this method of marketing involves an affiliate being rewarded every time that a visitor, client or a sale is generated for a business via an ad on your blog or website. Although compensation may be provided in many different ways, the concept remains largely the same: you are only paid if you generate business for your client. Affiliate marketing is an increasingly common method for business owners that are looking to get the most of their staying power on internet.

How it works:

1. Have a website or blog
You know a service or a product that you can recommend to your web visitors confidently. First of all, you will need to team up with the company that deals with this service or product.

2. Next thing is to market the service or product for the organization that is providing it. At this point, you qualify to be an affiliate.
For instance, let’s assume that on your website or blog, you bring to the attention of your readers the fantastic products or services being offered by company Z. This can be through putting a banner or a button on your website or writing an article about it. You also link the website of your product in your banner ad or website article. But you won’t be using just any ordinary link. The link must contain affiliate link. The affiliate link contains your unique and special ID.

3. Upon a leader clicking through the banner/button advertisement on your sidebar, they will be redirected to the website of the company that you are promoting. They will then have to make up their mind on whether or not to buy a service or a product.

4. The company that you are selling for can see that you are the one that referred the new client. This is because of a uniquely coded link telling them so.

5. For the merchants company to appreciate you for having referred a client to them, they will give you a decent commission. The commission is normally good, with some companies offering even 50% commission.

Conclusion

Affiliate marketing is one of the few genuine methods to make money on the internet. It is very easy to start since you do not have any stocks to put in your shop. It is a perfect home based business that offers genuine money making opportunities for people. There is no risk since you do not buy the stocks to sell.